There are two types of mortgage rates are in the market - Adjustable Mortgage Rates and Fixed Mortgage Rates.
Adjustable mortgage rate or variable mortgage rate or floating mortgage rate on a mortgage loan is nothing but the interest rates, which is periodically adjustable. The lender is ensured steady margin where his own funding cost is usually related to the index. There fore with changing mortgage rates, the payments made by the borrower might change over time.
The fixed rate mortgage on a mortgage loan is the interest rate, which is put on the promissoty note, and this mortgage rate remains the same for the whole term of the mortgage loan. The calculation of the monthly payment in case of the fixed mortgage rate is characterized by their interest rates, amount of loan and the term of the mortgage.
Duration of the payments affects home mortgage rates a lot. Generally shorter the mortgage term, lower will be the mortgage rate. If you need to choose between the long-term mortgage rates or short-term mortgage rate, always prefer to think of where your mortgage rates or the interest rates are headed.